FREEDOM Act

Reduction in Energy Costs: The bill finds that regulatory uncertainty and permitting delays increase the cost of building infrastructure, which in turn raises the cost of living and power prices for American families and businesses (Section 2).

Protection Against Financial Loss for Developers: The creation of the De-Risking Compensation Program aims to reduce regulatory risks for energy infrastructure developers and provide compensation if agency actions or delays cause a project to be cancelled or become unviable (Section 12202).

Faster Permitting for Low-Disturbance Activities: The bill directs agencies to adopt categorical exclusions for low-disturbance activities, such as maintenance of minor activities or preliminary geotechnical investigations, to facilitate timely permitting (Section 12101).

Increased Predictability for Energy Projects: By establishing enforceable Federal authorization timelines, the bill seeks to mitigate the catastrophic financial losses faced when agencies fail to adhere to deadlines (Section 2 and Section 12302).

Streamlined Geothermal Processes: The bill mandates annual leasing for geothermal resources instead of every two years and requires the Secretary of the Interior to establish a process for the simultaneous consideration of multiple project phases (Section 4).

Costs to Project Sponsors: To participate in the De-Risking Compensation Program, project sponsors must pay an annual premium equal to 1.5 percent of their capital contribution to the project (Section 12203).

Requirements for Capital Contribution Minimums: Compensation through the de-risking program is only available to project sponsors who demonstrate a capital contribution of at least $5,000,000 (Section 12204).

Administrative Burdens for Agencies: Agencies are subject to new, strict deadlines for issuing final decisions on routine and complex authorizations, with failures potentially resulting in civil penalties of up to $100,000 per day (Section 12302 and Section 12404).